In 2001, the Pennsylvania Department of Education contracted with Western Michigan University to evaluate Pennsylvania's charter schools and charter school initiative over two years. The study used site visits, work sample review, document review, focus groups, portfolios and surveys to gather data regarding the movement's effectiveness, progress, and impact. The report focuses on methods, descriptions of the reform, charter school startup challenges, finances, student and family characteristics, teacher and staff characteristics, working conditions, professional development, satisfaction levels, innovation, equity, accountability, student achievement, and alternative indicators of charter school quality. Overall, charter schools were making modest achievement gains against demographically and geographically similar schools, although the gains were not uniform. Charter school customers were generally satisfied with the curriculum and instruction, though less so with facilities and resources. There were some charter-host school differences in enrollment of low-income, minority, and special education students. Teachers were generally satisfied with their working conditions but left charter schools in high numbers. Pennsylvania's charter schools received significant technical assistance, making them aware of relevant rules and regulations. There was minimal diffusion of innovation from charter to noncharter schools. Includes 71 tables/figures. Appended are teacher/staff, student, and parent survey results as well as demographic information on charter school students and teachers. (Contains 57 references.) (SM)